sorry it is north and west
Here are some comments from Devon about their third quarter.
Third-quarter production from the Cana-Woodford Shale increased 71 percent compared to the year-ago quarter. Net production averaged a record 200 million cubic feet of natural gas equivalent per day in the quarter, including 8,100 barrels per day of liquids. The company’s Cana-Woodford gas processing facility remains on schedule to be fully operational in the fourth quarter.
KEY OPERATING STATISTICS BY REGION
Quarter Ended September 30, 2011
Avg. Prod Operated Rigs Gross Wells
(MBOED) Sept 30, 2011 Drilled
Barnett Shale 216.3 12 78
Canadian Oilsands 35.6 1 7
Cana-Woodford Shale 33.3 17 58
Granite Wash 16.4 4 18
Gulf Coast / East Tx 69.5 5 19
Lloydminster 40.0 4 79
Permian Basin 49.9 19 65
Rocky Mountains 64.5 1 26
Other 135.3 7 27
Total 660.8 70 377Leon, Nothing yet in your sections. I did see a Pooling Application for Osage Exp. in 5-16n/3w won’t know lease terms until pooling order final. Final Orders: sec1-19n/4w $250/ac. 3/16 royality, sec4-19n/3w $300/ac
3/16 royality.
Looks like Devon has their gas plant back online.
Moving now to the Cana Woodford Shale in Western Oklahoma. Reconstruction of our Cana gas processing plant is now complete. We began processing gas in late October and are currently running about 138 million cubic feet per day through the facility. Ramp-up will continue over the next several weeks as we expect to reach the plant’s [indiscernible] capacity of 200 million a day in September.
We have also started work on a planned expansion at Cana. This will increase the capacity of the Cana plant to 350 million a day with liquids extraction capacity of more than 30,000 barrels per day. The expansion allows us to keep pace with our growing Cana Woodford Shale volumes and roughly doubles our liquids extraction capacity in Cana. We expect the increase in capacity to be operational in the fourth quarter of next year.
On the drilling front, we ended the quarter – the third quarter with 17 operated rigs running in the Cana, 6 rigs fewer than in the previous quarter. We have achieved drilling efficiencies that allow us to now maintain the pace of our Cana program with fewer rigs. Accordingly, we made the decision in third quarter to release 2 rigs. In addition, while awaiting the recommissioning of our Cana plant, we elected to sublease 4 additional rigs to another company for the remainder of the year. With the Cana plant coming back online, we are confident in achieving our year-end exit rate target of 275 million cubic feet equivalent per day, net to Devon’s interest.
In spite of the planned operation or interruption, excuse me, our third quarter net Cana production increased 6% over the second quarter to a record 200 million cubic feet equivalent per day including more than 8,100 barrels per day of liquids.
Leon, Sorry I didn’t get back to you. I assume your Township is north are ranges east or west?
Oklahoma Woodford
Third quarter 2011 production in the Anadarko Woodford was 7,164 Boepd, a 78 percent increase over production of 4,031 Boepd in the second quarter of 2011. The Company’s production was 1,377 Boepd in the third quarter of 2010. The Company participated in completing 31 gross (13.5 net) wells during the third quarter of 2011. Of these wells, 15 gross (10.3 net) were Company-operated completions.
Continental successfully completed and is flowing back the Lyle 1-30H (99% WI) in Grady County, with initial oil and gas production expected to start shortly. The Lyle is an offset to and confirmation test for the Lambakis 1-11H (98% WI). The Company expects to announce initial test production results on the Lyle 1-30H by year end.
The Lambakis 1-11H flowed 5.4 MMcfpd of natural gas and 160 Bopd in its initial one-day test period, as announced in August 2011. Continental projects it has an estimated ultimate recovery (EUR) of more than 8 Bcfe, or 1.33 million Boe, due to its high liquids production. The Lambakis is especially significant due to its location 25 miles south of previously known horizontal Woodford production.
The Company is preparing to spud the Tom’s 1-21XH (82% WI) in Blaine County, which will be the first multiple-unit spaced well drilled in Oklahoma. The horizontal section of the Tom’s well is planned to be twice the length of previous Anadarko Woodford wells drilled in the play. Continental expects longer laterals will have a significant, positive impact on well productivity and economics in the Anadarko Woodford. The Company expects to complete the Tom’s well in the first quarter of 2012.
Using 3-D seismic, Continental has already identified 48 potential multi-unit drilling opportunities in the play and continues to acquire 3-D seismic over additional prospective areas.
Third quarter production in the Arkoma Woodford was 4,099 Boepd, compared with 3,236 Boepd in the second quarter of 2011. The Company participated in completing three gross (1.6 net) wells in the Arkoma, including the Ward 1-33H (88% WI), which flowed at 4.7 MMcfpd in its initial test period.
Continental currently has 14 operated rigs in the Oklahoma Woodford, with 11 in the Northwest Cana portion of the Anadarko Woodford, two in Southeast Cana, and one in the Arkoma Woodford.
The Company has 330,540 net acres leased in the Oklahoma Woodford, including 275,605 net acres in the Anadarko portion of the play, where it continues to acquire acreage.
Anyone got any idea where the pond is being built? I found the below information online from a Sept 2 article.
Huge pond planned
Devon Energy Corp. is making plans to build a 500,000-barrel pond near Geary or Calumet to store produced water, which is water that comes out of the ground after wells are drilled or fractured.
Such large-scale water recycling is unprecedented in Oklahoma, so state regulators had to create a set of new rules for the Devon project.
Jim Heinze, operations engineering manager for Devon’s Mid-Continent area, said the company is looking to apply some of the lessons it learned in the Barnett Shale, a more mature basin in Texas.
He said typical storage ponds for produced water are 50,000 gallons or less, but a larger pond will allow Devon to serve multiple wells at the same time.
“We’re trying to reduce the impact that we have on the environment,” he said.
Devon spokesman Chip Minty said the company recognizes that water is a resource that must be preserved, so it pioneered efforts to conserve water in the Barnett Shale.
Devon saw the opportunity to do the same thing in 2008, he said, but it took time for the Oklahoma Corporation Commission to develop rules for what the company wanted to do.
Heinze said Devon will dig a pond that is almost as long as two football fields on each side. It will be about 10 feet deep, enough that rain won’t cause it to overflow.
Devon also will use a 60-mil liner to prevent produced water from leaking into the ground.
Heinze said Devon will use a pipeline system to move the water to and from the company’s wells, a move that will reduce truck traffic in its operating area.
One mile south of Highway 270 and Karns road. The Legal Description is the NW/4 of Section 13-13N-10W. That is what I was told anyway.
Oklahoma Geological Survey has published maps and databases which summarize Oil and Gas information for the Woodford Formation. FYI (click on the hyperlink!)
Regards,
Ralpr
Looks like the first long lateral well is going to be drilled in Oklahoma
Continental Resources prepares technique that is the first of its kind in Oklahoma
BY JAY F. MARKS jmarks@opubco.com Oklahoman
Published: November 11, 2011
WATONGA — Continental Resources Inc. is trying out new drilling techniques in Oklahoma, thanks to a recent change in state law.
A Cactus Drilling Co. crew is expected to begin drilling the Toms 1-21XH well Friday in Blaine County.
Rick Muncrief, Continental’s senior vice president of operations, said the horizontal portion of the well will be nearly two miles long, stretching across two 640-acre sections just north of State Highway 33 east of Watonga.
He said the technique is expected to turn two marginally economic projects into an economic one by exposing more resource rock, while
causing less disruption to the environment since Continental will be drilling off one well pad instead of two.
Muncrief said multiunit wells are common in North Dakota, where Continental is the leading oil producer in the prolific Bakken Shale, but the company is among the first to try the technique in Oklahoma.
State law was modified this year to recognize such new drilling techniques.
“Traditionally, the law protecting the rights of all involved was based primarily on drilling, completion and production in a vertical hole, or if there was a horizontal well, it involved a relatively short lateral,” Oklahoma Corporation Commissioner Dana Murphy told The Oklahoman
in May. “Obviously, horizontal drilling using laterals that run thousands of feet brings new concerns and issues.”
Murphy said she expected the energy reform law, House Bill 1909, to increase new drilling activity in Oklahoma.
Continental’s Blaine County well will take up to 60 days to drill, since the bit must bore through nearly 10,000 feet of dense rock in the Anadarko Woodford formation. The well also will be about 10,000 feet deep.
Muncrief said it likely will take about three months for Continental to assess how well the multiunit well worked, but he is optimistic about the technique’s performance in Oklahoma.
Continental could drill as many as nine more multiunit wells in 2012, if the technique proves successful.
“We’re encouraged by what we’re seeing,” Muncrief said.
He said he thinks other oil and natural gas companies active in western Oklahoma will adopt Continental’s methods if the multiunit technique works as expected.
“It’s hard for someone like me not to get excited by the potential, the opportunity for our state,” the oil and natural gas industry veteran said.
Muncrief also said Continental could drill additional wells from the same unit, if the prospect proves to be economical. Four wells may be necessary to adequately drain the reservoir.
He said Continental has exposed up to eight miles of reservoir rock from one site in North Dakota.
“Time will tell if we can do that here,” he said.
I was wondering if anyone knows how the Woodford geology looks immediately East of Canton, Okla in Blaine County ? The legal description is the SE/4 of 3-18-13. My Dad leased the 160 Acres, 2 times several years ago but they were looking at another zone then. Thanks.
Lanny From the map it show the Woodford going up that way and to be more oil. Seems like they are concentrating in the gas-rich area now. I have a producing well one of the last eastern sections of Dewey county right next to Blaine co. It is located about 3 miles southwest of Eagle City. You can go onto the Oklahoma Corporation Web site and do searches for wells in any section. It will show old and new wells going back several years. You just have to plug in county, section, range and township. Good Luck. Larry
We have a well that was just completed in Dewey County 33 17N 14W. It has had low pressure and is not producing right now due to too much water. Is this a common problem in that area when drilling into the Woodford?
Greg, Where is 27-17-15 from Canton ?
We are close to Oakwood.
Thanks, Larry.
Ok, and thanks Linda.
Greg, Thats a nice lease bonus but I’m not finding that Pooling Order in occ database. Most recent posting was a Location Exception.
I don’t know very much about the deep gas wells, but I’m learning. We have intrest in section27-17N-15W. Devon Energy is planning to drill in the next 6 months and I don’t really know what to expect. Final pooling orders were $1,500/acre plus 3/16 royalty, $1,000/acre plus 1/5, or no bonus plus 1/4 royalty. Sounds pretty good compared to others I’ve seen. Being new at this we will just have to wait and see.
That would be close to Eagle City which is about 9 miles southwest of Canton